The state cabinet on Thursday cleared 25% reservation in private self-financing universities. The government had to take the decision as the act passed for enabling formation of these private universities had been returned by the governor asking it to make reservation mandatory for them as it was the state's policy.

The government was in two minds on the issue as providing 52% reservation (applicable under the state's policy) for various categories would mean private educational institutions showing little interest in setting up their universities here. The issue came up for discussion in the state cabinet's meeting on Thursday.

The cabinet decided to provide 25% instead of 52% reservation for various socially backward categories. The number of reserved seats was reduced as self-financing universities would not take any help from the government. The intention behind passing the law was that private educational institutions - Indian as well as foreign - should set up universities in Maharashtra.

But, if 52% of the seats at these universities were to be reserved, these institutions would get less than half the seats for open categories. "Private educational institutions were not keen to follow this," said a minister requesting anonymity. The government will now bring in new legislation during the ongoing session to amend the act passed earlier.